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Canada/Québec Pension Plan Benefits

1

Notes

(1) This table summarizes the maximum monthly Canada Pension Plan (CPP) benefits (except 

for the lump-sum death benefit) that are applicable for each of the years noted. The 

rates and rules outlined herein may vary slightly under the terms of the Québec Pension 

Plan (QPP) legislation. Payments are also made to individuals outside Canada provided 

all eligibility conditions are met. All of the monthly benefit amounts are indexed to the 

Consumer Price Index (CPI) and adjusted annually.

(2) Retirement benefits are monthly taxable benefits paid to individuals who have made at 

least one contribution to the CPP or QPP. The contributory period commences at the age 

of 18 and ends when the individual takes a retirement pension, reaches the age of 70, or 

dies, whichever occurs first. The contributor has the option of drawing retirement benefits 

as early as age 60 or as late as age 70. The benefit is based on how much, and for how 

long, the individual has contributed to the CPP and/or QPP. The age at which an individual 

chooses to retire also affects the benefit amount. Contributors must apply in order to 

receive CPP/QPP benefits.

Married or common-law individuals may apply to receive an equal share of the total 

retirement benefits earned by both individuals. Both partners must be at least 60 years old 

and both must have applied for their respective benefits. The benefit can be shared even if 

only one partner has contributed in the past.

Retirement benefits received by non-residents will be subject to a 25% withholding tax; 

however, this rate may be reduced by a treaty.

More information on retirement benefits is available on the Government of Canada website 

at www.servicecanada.gc.ca/eng/sc/cpp/retirement/canadapension.shtml. 

(3)  Canada’s Department of Finance changed the administration of the CPP in 2012. The 

early penalty will increase to 0.6% per month (from 0.5% per month). This change will be 

phased in over five years, beginning in 2012. By 2016, individuals that choose to take their 

pension at age 60 will have their basic amount reduced by 36%.

 

For individuals that choose to continue to work after 65, the benefit rate will increase to 

0.7% per month (from 0.5% per month). This increase is being implemented over three 

years, starting in 2011. By 2013, individuals that choose to take their pension at age 70 will 

have their basic amount increased by 42%.

 

Previously, individuals that received CPP benefits and returned to work (i.e., working 

beneficiaries) did not pay CPP contributions and, therefore, did not continue to build their 

CPP pension. Under the existing rules, which began in 2012, taxpayers under age 65 who 

work and receive a CPP retirement benefit must still make CPP contributions, which are 

matched by their employers. Employed taxpayers between age 65 and age 70 can opt 

to participate in the CPP to continue to build their pension, which would require their 

employers to contribute as well.

 

These changes, as well as a number of other proposed changes, will not affect 

beneficiaries receiving CPP retirement benefits before January 1, 2011 that also stay out of 

the work force.

2011

2012

2013

Retirement benefits

2,3

$  960

$  986

$  1,013

Disability benefits

4

1,153

1,186

1,213

Survivor benefits

5

:

Under age 65

Over age 64

529

576

544

592

557

608

Lump-sum death benefit

6

 (max)

2,500

2,500

2,500

© 2013 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms

affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Current as of September 30, 2013